Author: WTX Business Team

UK’s economy shrinks unexpectedly by 0.1% in October Britain’s economy shrank by 0.1% in October, underlining the scale of Labour’s challenge to get the economy growing. Figures from the Office for National Statistics showed the unexpected fall in GDP was driven by declines in construction and production, while the dominant services sector stagnated. Economists, polled by Reuters, had expected the economy to grow by 0.1%. It follows a decline of 0.1% in September and sluggish growth of 0.1% in the third quarter of the year, according to figures last month. https://www.theguardian.com/business/2024/dec/13/uk-economy-october-gdp

The outage began around 18:00 GMT, according to the tracking site Downdetector, and affected users in the UK, Europe, Asia, Australia, South America, and the US. Reports indicated over 18,000 issues with WhatsApp and more than 22,000 with Facebook.

Business confidence drops at fastest pace for over three years Business optimism fell at its fastest pace in over three years following October’s Budget, a new survey shows. BDO’s latest business trends survey, which collects and regroups data from the UK’s main business surveys, showed that corporate confidence fell to its lowest level since January 2023. The optimism index dropped 5.8 points to 93.49 in November, which was the largest monthly fall since August 2021. The drop in confidence reflects the anticipated effect of the Budget, as businesses brace for the impact of the national insurance hike and the increase…

UK start-ups still at the forefront of global innovation Despite the “doom and gloom” narrative and post-Budget fears looming over the UK’s start-up ecosystem, the country still holds its ground at the forefront of global innovation. At least that is the view of Ashish Patel, managing director at Houlihan Lokey’s Capital Market Group, who says that a rise of international investment into UK start-ups this year is indeed a sign of good fortune. While referencing the success of “landmark deals” across a variety of sectors this year, including AI firm Wayve’s $1bn (£787m) raise for self-driving cars, biotech start-up Nuclera’s $75m (£59m) for…

Cabinet minister pledges to make government more ‘start up’ A cabinet minister is set to pledge that the government will become “more like a start up” ahead of the launch of a £100m fund targeting public service reform. Pat McFadden will call for Whitehall to adopt a ‘test and learn culture’, stating: “If we keep governing as usual, we are not going to achieve what we want to achieve” Speaking at University College London in Stratford on Monday, the Chancellor of the Duchy of Lancaster is expected to launch a new fund focusing on efficiency in bureaucracy. “Test it. Fix the…

Job vacancies collapse as Budget tax raid puts firms off hiring, survey shows The number of job vacancies in the UK fell at its fastest pace in over four years last month as firms held off hiring due to the government’s Budget tax hikes, a new survey suggests. The latest report on jobs from KPMG and the Recruitment and Employment Confederation (REC) showed an “accelerated decline” in the number of people placed in permanent roles by recruiters. The survey also showed that the number of job openings fell at the sharpest pace since August 2020 as demand for staff dried…

Bitcoin, the world’s largest cryptocurrency, has smashed through the $100,000 mark for the first time, setting a new record high. This historic milestone comes amid growing excitement over the possibility that US President-elect Donald Trump may support cryptocurrency-friendly policies.

Will other Chinese firms follow Shein to London? Shein’s reported decision to list in London rather than New York is likely to be an anomaly rather than a trend, says Megan Penick Fashion giant Shein’s prospective IPO – slated for early next year – has caused something of a stir in the City. Indeed, the decision to list on the London Stock Exchange appears on the surface a major vote of confidence for London, as it looks to compete with the New York Stock Exchange and Nasdaq. In an uncertain economic landscape, it provides reassurance that Britain is still an…

Costain wins major HS2 contract It has been announced that engineering firm Costain has been awarded a contract by HS2 worth upwards of £400m. The deal will see the group supply tunnel and lineside mechanical and electrical systems over a seven-year period, beginning in the first quarter of 2025. It comes after a stellar year for the company, which has seen its shares rise over 60 per cent since January. Costain reported a near-doubling of profit in its half-year results in August. It also announced a £10m share buyback programme. https://www.cityam.com/costain-wins-major-hs2-contract/

Employment reforms need considerable thought to not ‘swamp business’ A legal group urged Parliament that the Employment Bill needs “considerable thought” to avoid ” swamping business” with costs or obligations that “confuse even senior and experienced lawyers.” In written evidence provided to the Committee overseeing the Employment Rights Bill, the Employment Lawyers Association (ELA), a group of 7,000 lawyers, urged the government to reconsider some of the changes contained within the bill. The ELA stated that the zero-hour contract changes “will grant workers rights that are so difficult to navigate that this may well impact their ability to be enforced”…

The chaos in South Korea leads the Financial Times after the country’s president declared martial law – later rejected by the country’s parliament.

The front page of CITY AM reports on the junk food ad ban set to be introduced amid warnings from the industry that it could impact the economy.

Business insights this week – 02/12/24 -WTX News Business Consumer confidence in the economy dips following Budget -CITYAM

French PM forces social security budget bill without a vote -Le Monde French PM Barnier announces concession in bid to end budget standoff -France24 What happens without a Social Security budget? -Le Monde